Over 100 Billion Won Raised in Three Years Since Program Launch
Donations Surge for Special Disaster Zones
This year, the cumulative amount raised through the Hometown Love Donation Program has surpassed 100 billion won for the first time since the program's inception.
According to the Ministry of the Interior and Safety on December 16, the cumulative amount raised through the Hometown Love Donation Program as of December 15 has exceeded 100 billion won this year.
In the first year of the program in 2023, 65.1 billion won was raised, and last year, the amount reached 87.9 billion won. This year, the amount raised as of December 9 had already surpassed last year's total.
The Hometown Love Donation Program was introduced to address the risk of local extinction. Under this system, individuals can donate to local governments outside their registered address and receive tax deductions and return gifts. The donations are used for local government projects aimed at improving residents' welfare. For year-end tax settlements, donations up to 100,000 won are fully tax-deductible.
The Ministry explained that donations surged in March and April, particularly in eight areas including Sancheong, Ulju, and Andong, which were designated as special disaster zones following wildfires in March. The combined amount raised in these regions during March and April this year was 18.4 billion won, approximately 2.3 times higher than the same period last year (7.9 billion won).
Previously, to encourage donations to special disaster zones, the government amended the relevant law in March to increase the tax deduction rate for donations exceeding 100,000 won made within three months after a special disaster zone declaration, from the previous 16.5% to 33%.
The Ministry expects that the benefits of tax deductions through year-end tax settlements and the provision of return gifts will lead to a concentration of donations at the end of the year. The proportion of December donations out of the annual total has been increasing each year, from 40.1% in 2023 to 49.4% in 2024. By age group, those in their 30s accounted for the largest share at 30.7%, followed by those in their 40s (28.7%) and 50s (24.7%).
Furthermore, starting next year, the tax deduction rate for donations exceeding 100,000 won but not exceeding 200,000 won will be increased from 16.5% to 44%. As a result, the growth of the Hometown Love Donation Program is expected to accelerate even further.
Kim Minjae, Vice Minister of the Ministry of the Interior and Safety, stated, "The warm hearts of each and every donor have come together to achieve the milestone of 100 billion won in donations. As the year comes to a close, I ask for your continued interest in the Hometown Love Donation Program so that your generosity can be delivered to your hometowns, helping to overcome the crisis of local extinction and revitalize the regional economy."
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